Clause 8.

Clause 9.

Clause 10.

Clause 11.

Clause 12.

Clause 13.

Clause 14.

Bill as a whole.

Does committee agree that Bill 23 is ready for third reading?

Bill 23 is now ready for third reading. Thank you, Mr. Minister. Thank you, witness. Sergeant-at-Arms, could you escort the witness out.

The next bill we agreed to deal with is Bill 24, An Act to Amend the Workers' Compensation Act. At this time I would like to ask the Minister responsible for introducing the bill if he has any opening comments. Mr. Handley.

Mr. Chairman, I am pleased to present Bill 24, An Act to Amend the Workers' Compensation Act. The bill proposes to increase that year's maximum insurable remuneration, known as YMIR, from $63,350 to $64,500 effective January 1, 2003. This amount would apply for both benefit and assessment purposes.

The year's maximum insurable remuneration is a fundamental element of workers' compensation. It is used to determine benefits payable to an injured worker, as well as the amount of payroll for which an employer will be assessed in the year. The YMIR is currently set at $63,350.

When a worker becomes entitled to workers' compensation in the Northwest Territories, he or she is paid 90 percent of net earnings for as long as the disability continues. If a worker's earnings exceed the YMIR, this calculation is based on the maximum YMIR of $63,350.

Employers, meanwhile, are assessed according to their payroll. When a worker receives a salary greater than YMIR, the employer is only assessed on payroll up to the maximum YMIR of $63,350.

Section 52 of the Workers' Compensation Act states that the Workers' Compensation Board must review the YMIR every year. This review is completed according to board policy and a recommendation is forward to my office.

Bill 24 will allow the WCB to provide full replacement compensation to 70 percent to 80 percent of the Northwest Territories workforce. This means that 70 to 80 percent of full-time workers will be fully compensated in the event of injury under the new YMIR.

The YMIR was last amended by this House in the year 2000. With the proposed change the Northwest Territories will have the third highest YMIR in Canada. In closing, I look forward to hearing any comments on Bill 24 and I am happy to answer any questions from the committee. Thank you.

Thank you, Mr. Minister. At this time I would like to ask the committee responsible for reviewing the bill if they have any comments. Mr. Dent.

Thank you, Mr. Chairman. The Standing Committee on Accountability and Oversight held public hearings on Bill 24, An Act to Amend the Workers' Compensation Act on Monday, October 28, 2002. This bill proposes to increase the year's maximum insurable remuneration, or YMIR, from its current $63,350 to $64,500 effective January 1, 2003.

YMIR is used to calculate the maximum benefits payable to injured workers as well as the amount of payroll an employer will be assessed on the upcoming year. The consequence of increasing the benefit payable to workers is a corresponding increase to the amount of payroll that an employer has to pay WCB assessment on.

The Workers' Compensation Board has a yearly statutory requirement to review the YMIR. The committee was told that in reviewing the YMIR the board determines whether the rate in the Northwest Territories and Nunavut covers 70 to 80 percent of workers in replacing their total income.

Mr. Chairman, in addition we also understand that the board considers whether the YMIR is in the top three in Canada and whether the board has one of the three lowest assessment rates in the country.

According to information provided by the WCB, the YMIR increase proposed in Bill 24 accomplishes this. This completes the committee's review of Bill 24, An Act to Amend the Workers' Compensation Act. Individual members of the committee may have questions and comments for the Minister as we proceed. Thank you, Mr. Chairman.

At this time I would like to ask the Minister responsible for the bill if he will be bringing in any witnesses. Mr. Handley.

Yes I will, Mr. Chairman.